According to Jin10, U.S. stock index futures rose slightly before the open on Tuesday, while oil prices gave back earlier gains after Pakistan signaled that the United States and Iran were close to reaching an agreement that could ease tensions in energy markets. Traders are also waiting for key inflation data to guide Federal Reserve interest-rate policy. Capital.com senior market analyst Daniela Hathorn wrote that investors are increasingly pricing in a scenario in which inflation continues to cool, the Federal Reserve remains patient, and earnings growth is sufficient to support elevated valuations; she said another mild CPI reading would reinforce that narrative and extend the rally, while a stronger-than-expected reading would push U.S. Treasury yields and the dollar higher and force the market to reassess whether recent optimism around policy and valuations is justified.
